According to Benzinga Pro, during Q2, Chipotle Mexican Grill CMG earned $245.53 million, a 46.92% increase from the preceding quarter. Chipotle Mexican Grill also posted a total of $1.89 billion in sales, a 8.67% increase since Q1. In Q1, Chipotle Mexican Grill earned $167.11 million, and total sales reached $1.74 billion.
Why Is ROIC Significant?
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q2, Chipotle Mexican Grill posted an ROIC of 11.49%.
Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q2, Chipotle Mexican Grill posted an ROIC of 11.49%.
Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.
For Chipotle Mexican Grill, the positive return on invested capital ratio of 11.49% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.
Upcoming Earnings Estimate
Chipotle Mexican Grill reported Q2 earnings per share at $7.46/share, which beat analyst predictions of $6.49/share.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.